Exempts persons operating wing-in-ground craft engaged in the transportation of passengers from the application of the Hawaii Water Carrier Act. Defines "wing‑in‑ground craft". (CD1), the official text

THE SENATE

S.B. NO.

2400

THIRTY-THIRD LEGISLATURE, 2026

S.D. 1

STATE OF HAWAII

H.D. 1

C.D. 1

A BILL FOR AN ACT

RELATING TO TRANSPORTATION.

BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1.  The
legislature finds that wing-in-ground craft, which are often referred to as
"seagliders", are an emerging interisland mode of
transportation.  These vessels utilize
wing-in-ground-effect technology to provide a novel, zero-emission,
inexpensive, and highly efficient mode of transportation.  Wing-in-ground craft operate on water while
in harbors, leverage hydrofoils while transiting, and fly within a wingspan's
length above the water, enabling rapid transportation between ports.

The legislature further finds that because
wing-in-ground craft operators aim to directly complement existing air travel
by providing statewide interisland transportation, subjecting these operators
to the public utilities commission's water carrier regulations would impose
undue oversight and increase costs without improving public safety or consumer
protection.  In particular, the
legislature notes that the United States Coast Guard oversees the public safety
and consumer protection aspects of wing-in-ground craft.

The legislature further finds that
exempting wing-in-ground craft from public utilities commission jurisdiction
will benefit the State by:

(1)  Supporting
Hawaii's statutory decarbonization goals, including:

(A)  Section
225P-5, Hawaii Revised Statutes, which establishes statewide emissions
reduction targets for the years 2030 and 2045;

(B)  Section
225P-7, Hawaii Revised Statutes, which establishes as a goal for the State the
decarbonization of the transportation sector and state agency fleets; and

(C)  Section
225P-8, Hawaii Revised Statutes, which establishes a statewide goal of zero
emissions across all transportation modes, including ground transportation and
sea and air interisland transportation.

In light of these goals, the Hawaii
state energy office, in its "pathways to decarbonization" report to
the legislature pursuant to Act 238, Session Laws of Hawaii 2022, identified
the use of wing-in-ground craft as a strategic decarbonization measure.  The use of wing-in-ground craft also helps to
fulfill the requirements of the Navahine settlement agreement between the
department of transportation and the youth plaintiffs;

(2)  Enhancing
connectivity for underserved communities, including improving health care
access between the islands of the State and the hospitals and medical
facilities on Oahu by providing an affordable transportation option;

(3)  Bolstering
state resiliency efforts, including emergency response, humanitarian rescue,
and food security, by providing rapid transportation to otherwise inaccessible
areas of need;

(4)  Stimulating
education and workforce development opportunities in the green economy as the
market for wing-in-ground craft travel grows;

(5)  Attracting
sustainable infrastructure investment; and

(6)  Enhancing
the State's economy through job creation in the green economy.

Accordingly, the purpose of this Act is to exempt
persons operating wing-in-ground craft engaged in the transportation of
passengers from the application of the Hawaii Water Carrier Act.

SECTION
2.  Section 271G-5, Hawaii Revised
Statutes, is amended by adding a new definition to be appropriately inserted
and to read as follows:

""Wing-in-ground
craft" means a vessel that is capable of operating completely above the
surface of water on a dynamic air cushion created by the aerodynamic lift
caused by the ground effect between the vessel and the water's surface."

SECTION
3.  Section 271G-6,
Hawaii Revised Statutes, is amended to read as follows:

"§271G-6  Exemptions, generally.  Notwithstanding any other provisions of this
chapter, its contents shall not apply to:

(1)  Persons transporting their own property
where the transportation is in furtherance of a primary business purpose or
enterprise of that person except where the transportation is undertaken by a
water carrier to evade the regulatory purposes of this chapter;

(2)  Nonprofit agricultural cooperative
associations to the extent that they engage in the transportation of their own
property or the property of their members;

(3)  Persons engaged in the transportation
over water of passengers or property for compensation, other than
transportation referred to in the definition of "water carrier" or
"common carrier by water" in section 271G‑5 under continuing
contracts with one person or a limited number of persons for the furnishing of
transportation services:

(A)  Through the assignment of vessels for a
continuing period of time to the exclusive use of each person served; or

(B)  Designed to meet the distinct need of each
individual customer;

(4)  Persons transporting their own property
or employees where the transportation is in furtherance of a business or
enterprise of fishing or taking of fish for profit or gain as a means of
livelihood; [or]

(5)  Persons engaged in the business of
transporting persons for sightseeing and other recreational activities[.];
or

(6)  Persons operating wing-in-ground
craft engaged in the transportation of passengers."

SECTION 4.
Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

SECTION 5.
This Act shall take effect upon its approval.